The Impact On Cigar Retailers From FDA Regulations Part 1

​There have been many changes, over the years, regarding regulations for manufacturers and retailers who sell tobacco products.  We are going to address the various regulations that have continually changed since 2016.
 
For some time now, FDA regulations have fallen on manufacturers but with new regulations, retailers are going to start feeling the impact.

About Warning Labels:
 
One of the biggest changes in warning labels has applied to retailers, manufacturers, and distributors alike. New FDA requirements have required cigar boxes displaying warning labels that cover at least 30% on the top and 30% on the front of the boxes.
 
Retailers are required to post a sign that is not smaller than 8-1/2 x 11 which lists all 5 warning labels and a declaration that cigars are addictive products.  This sign must appear within 3-inches of each cash register.  The restrictions will also prevent retails from changing boxes by removing the warning labels or removing the lids with these warning labels.
 
The FDA has also suggested that online retailers shipping individual cigars to customers should have an additional warning label on the shipping boxes.
 
Note:  All tobacco products are subject to the FDA and Cosmetic Act.
 
The Cost Of Products On The Consumer:
 
There is no doubt the added costs and user fees will be passed on to the retailer.  Also, the number of cigars available on the market is decreasing.  This will have an impact on limited edition cigars, especially those that are under 50,000 in production.  The fact is, the financial burden cannot be spread out among all productions.
 
Previously, the FDA estimated there are 7,500 SKUs on the market but is now believed to be underestimated.  The underestimated levels are from the data collected from the obsolete 2010 Perelman's Pocket Cyclopedia of Cigars, the Cigars International website, the sister site Pipes & Cigars, and the Cigar Geeks databases.  It's believed that none of these sources have provided accurate information regarding smaller and limited cigar brands that are on the market.
 
In 2014, the FDA estimated that approximately 10% to 50% of cigars would be removed from the market.  Those estimates were based on a smaller percentage of cigars being grandfathered.  Now, it's estimated that 60% of cigars are grandfathered.  To date, the FDA has declined on the actual amount of cigars removed from the market.